ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
TSX:ACO-X - Toronto Stock Exchange - CA0467894006 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ACO-X. ACO-X was compared to 21 industry peers in the Multi-Utilities industry. Both the profitability and the financial health of ACO-X get a neutral evaluation. Nothing too spectacular is happening here. ACO-X has a decent growth rate and is not valued too expensively. Finally ACO-X also has an excellent dividend rating. These ratings could make ACO-X a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ACO-X was profitable.
In the past year ACO-X had a positive cash flow from operations.
In the past 5 years ACO-X has always been profitable.
Each year in the past 5 years ACO-X had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.49%, ACO-X perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
ACO-X's Return On Equity of 8.61% is amongst the best of the industry. ACO-X outperforms 100.00% of its industry peers.
ACO-X has a Return On Invested Capital of 3.09%. This is in the better half of the industry: ACO-X outperforms 73.68% of its industry peers.
ACO-X had an Average Return On Invested Capital over the past 3 years of 3.80%. This is in line with the industry average of 2.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 8.61% | ||
| ROIC | 3.09% |
ROA(3y)1.44%
ROA(5y)1.56%
ROE(3y)8.07%
ROE(5y)8.65%
ROIC(3y)3.8%
ROIC(5y)4.03%
1.3 Margins
The Profit Margin of ACO-X (8.11%) is comparable to the rest of the industry.
ACO-X's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 21.06%, ACO-X is doing good in the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Operating Margin of ACO-X has grown nicely.
Looking at the Gross Margin, with a value of 78.13%, ACO-X is in line with its industry, outperforming 52.63% of the companies in the same industry.
ACO-X's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.06% | ||
| PM (TTM) | 8.11% | ||
| GM | 78.13% |
OM growth 3Y-1.56%
OM growth 5Y1.65%
PM growth 3Y12.56%
PM growth 5Y6.31%
GM growth 3Y-0.33%
GM growth 5Y-2.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACO-X is destroying value.
ACO-X has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ACO-X has been reduced compared to 5 years ago.
ACO-X has a worse debt/assets ratio than last year.
2.2 Solvency
ACO-X has an Altman-Z score of 0.73. This is a bad value and indicates that ACO-X is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.73, ACO-X belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
ACO-X has a debt to FCF ratio of 21.95. This is a negative value and a sign of low solvency as ACO-X would need 21.95 years to pay back of all of its debts.
ACO-X's Debt to FCF ratio of 21.95 is amongst the best of the industry. ACO-X outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 2.57 is on the high side and indicates that ACO-X has dependencies on debt financing.
The Debt to Equity ratio of ACO-X (2.57) is worse than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 21.95 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.63
WACC4.95%
2.3 Liquidity
ACO-X has a Current Ratio of 1.75. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
ACO-X has a Current ratio of 1.75. This is amongst the best in the industry. ACO-X outperforms 100.00% of its industry peers.
ACO-X has a Quick Ratio of 1.60. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACO-X (1.60) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
ACO-X shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.57%, which is quite good.
The Earnings Per Share has been growing slightly by 4.27% on average over the past years.
ACO-X shows a decrease in Revenue. In the last year, the revenue decreased by -1.95%.
The Revenue has been decreasing by -0.61% on average over the past years.
EPS 1Y (TTM)12.57%
EPS 3Y7.44%
EPS 5Y4.27%
EPS Q2Q%14.08%
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y6.33%
Revenue growth 5Y-0.61%
Sales Q2Q%5.48%
3.2 Future
Based on estimates for the next years, ACO-X will show a small growth in Earnings Per Share. The EPS will grow by 5.67% on average per year.
Based on estimates for the next years, ACO-X will show a small growth in Revenue. The Revenue will grow by 2.94% on average per year.
EPS Next Y13.57%
EPS Next 2Y6.7%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue Next Year5.95%
Revenue Next 2Y2.87%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ACO-X is valuated reasonably with a Price/Earnings ratio of 11.74.
ACO-X's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, ACO-X is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of ACO-X can be described as reasonable.
ACO-X's Price/Forward Earnings is on the same level as the industry average.
ACO-X's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-X is valued a bit cheaper than 73.68% of the companies in the same industry.
ACO-X's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACO-X is cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 8.79 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACO-X has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)2.75
EPS Next 2Y6.7%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
ACO-X has a Yearly Dividend Yield of 4.21%, which is a nice return.
With a Dividend Yield of 4.21, ACO-X pays less dividend than the industry average, which is at 5.33. 94.74% of the companies listed in the same industry pay a better dividend than ACO-X!
Compared to an average S&P500 Dividend Yield of 2.27, ACO-X pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of ACO-X has a limited annual growth rate of 4.80%.
ACO-X has been paying a dividend for at least 10 years, so it has a reliable track record.
ACO-X has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.8%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
56.33% of the earnings are spent on dividend by ACO-X. This is a bit on the high side, but may be sustainable.
ACO-X's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP56.33%
EPS Next 2Y6.7%
EPS Next 3Y5.67%
TSX:ACO-X (2/21/2025, 7:00:00 PM)
48.37
+0.42 (+0.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners30.02%
Inst Owner ChangeN/A
Ins Owners0.7%
Ins Owner ChangeN/A
Market Cap5.43B
Analysts80
Price Target52.45 (8.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.9
Dividend Growth(5Y)4.8%
DP56.33%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.23%
Min EPS beat(2)5.69%
Max EPS beat(2)10.76%
EPS beat(4)4
Avg EPS beat(4)6.52%
Min EPS beat(4)1.44%
Max EPS beat(4)10.76%
EPS beat(8)6
Avg EPS beat(8)2.88%
EPS beat(12)9
Avg EPS beat(12)4.68%
EPS beat(16)13
Avg EPS beat(16)6.83%
Revenue beat(2)0
Avg Revenue beat(2)-12.19%
Min Revenue beat(2)-18.95%
Max Revenue beat(2)-5.42%
Revenue beat(4)0
Avg Revenue beat(4)-14.09%
Min Revenue beat(4)-26.13%
Max Revenue beat(4)-5.42%
Revenue beat(8)0
Avg Revenue beat(8)-10.57%
Revenue beat(12)1
Avg Revenue beat(12)-9.1%
Revenue beat(16)2
Avg Revenue beat(16)-8.75%
PT rev (1m)1.31%
PT rev (3m)1.31%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.24%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.14 | ||
| P/FCF | 10.22 | ||
| P/OCF | 2.53 | ||
| P/B | 1.21 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)4.12
EY8.52%
EPS(NY)4.35
Fwd EY8.99%
FCF(TTM)4.73
FCFY9.78%
OCF(TTM)19.12
OCFY39.53%
SpS42.52
BVpS40.07
TBVpS28.43
PEG (NY)0.87
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 8.61% | ||
| ROCE | 4.02% | ||
| ROIC | 3.09% | ||
| ROICexc | 3.17% | ||
| ROICexgc | 3.35% | ||
| OM | 21.06% | ||
| PM (TTM) | 8.11% | ||
| GM | 78.13% | ||
| FCFM | 11.13% |
ROA(3y)1.44%
ROA(5y)1.56%
ROE(3y)8.07%
ROE(5y)8.65%
ROIC(3y)3.8%
ROIC(5y)4.03%
ROICexc(3y)3.96%
ROICexc(5y)4.21%
ROICexgc(3y)4.15%
ROICexgc(5y)4.4%
ROCE(3y)4.95%
ROCE(5y)5.24%
ROICexcg growth 3Y0.35%
ROICexcg growth 5Y-0.4%
ROICexc growth 3Y-0.23%
ROICexc growth 5Y-0.8%
OM growth 3Y-1.56%
OM growth 5Y1.65%
PM growth 3Y12.56%
PM growth 5Y6.31%
GM growth 3Y-0.33%
GM growth 5Y-2.13%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 21.95 | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 193.18% | ||
| Cap/Sales | 33.84% | ||
| Interest Coverage | 1.79 | ||
| Cash Conversion | 116.57% | ||
| Profit Quality | 137.21% | ||
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 0.73 |
F-Score6
WACC4.95%
ROIC/WACC0.63
Cap/Depr(3y)200.49%
Cap/Depr(5y)188.77%
Cap/Sales(3y)32.06%
Cap/Sales(5y)29.56%
Profit Quality(3y)174.3%
Profit Quality(5y)182.52%
High Growth Momentum
Growth
EPS 1Y (TTM)12.57%
EPS 3Y7.44%
EPS 5Y4.27%
EPS Q2Q%14.08%
EPS Next Y13.57%
EPS Next 2Y6.7%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y6.33%
Revenue growth 5Y-0.61%
Sales Q2Q%5.48%
Revenue Next Year5.95%
Revenue Next 2Y2.87%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
EBIT growth 1Y-23.75%
EBIT growth 3Y4.67%
EBIT growth 5Y1.03%
EBIT Next Year458.66%
EBIT Next 3Y85.57%
EBIT Next 5YN/A
FCF growth 1Y-36.94%
FCF growth 3Y-21.12%
FCF growth 5YN/A
OCF growth 1Y-4.28%
OCF growth 3Y2.16%
OCF growth 5Y14.49%